1-1                                   AN ACT

 1-2     relating to estimates of, and delinquent assessments for,

 1-3     maintenance and operating expenses in certain water districts.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Sections 51.304, 51.310, and 51.313, Water Code,

 1-6     are amended to read as follows:

 1-7           Sec. 51.304.  BOARD'S ESTIMATE OF MAINTENANCE AND OPERATING

 1-8     EXPENSES.  The board, on or as soon as practicable after a date

 1-9     fixed by standing order of the board, shall estimate the expenses

1-10     of maintaining and operating the irrigation system for the next 12

1-11     months.  The board may change the 12-month period for which it

1-12     estimates the expenses of maintaining and operating the irrigation

1-13     system by estimating such expenses for a shorter period so as to

1-14     adjust to a new fixed date and thereafter estimating the expenses

1-15     for 12-month periods following the adjusted fixed date.

1-16           Sec. 51.310.  LIST OF DELINQUENT ASSESSMENTS.  Assessments

1-17     not paid when due shall become delinquent on the first day of the

1-18     month following the date payment [Within 10 days after any

1-19     assessment] is due, and the board shall post in a public place in

1-20     the district a list of all persons who are delinquent in paying

1-21     their assessments and shall keep posted a correct list of all

1-22     persons who are delinquent in paying assessments.  If a person who

1-23     owes an assessment has executed a note and contract as provided in

1-24     Section 51.302 of this code, he shall not be placed on the

 2-1     delinquent list until after the maturity of the note and contract.

 2-2           Sec. 51.313.  INTEREST AND COLLECTION FEES.  (a)  All

 2-3     assessments shall bear interest from the date payment is due at the

 2-4     rate of 15 percent a year.  Assessments not paid by the first day

 2-5     of the month following the date payment is due shall become

 2-6     delinquent, and a penalty of up to 15 percent of the amount of the

 2-7     past-due assessment shall be added to the amount due.

 2-8           (b)  If suit is filed to foreclose a lien on crops or if a

 2-9     delinquent assessment is collected by an attorney before or after

2-10     suit [any legal proceeding], an additional amount of 15 percent on

2-11     the unpaid assessment, penalty, [principal] and interest shall be

2-12     added as collection or attorney's fees.

2-13           SECTION 2.  Sections 55.352, 55.360, and 55.363, Water Code,

2-14     are amended to read as follows:

2-15           Sec. 55.352.  BOARD'S ESTIMATE OF [ASSESSMENTS FOR]

2-16     MAINTENANCE AND OPERATING EXPENSES.  The board, on or as soon as

2-17     practicable after a date fixed by standing order of the board,

2-18     shall estimate the expenses of maintaining and operating the

2-19     irrigation system for the next 12 months.  The board may change the

2-20     12-month period for which it estimates the expenses of maintaining

2-21     and operating the irrigation system by estimating such expenses for

2-22     a shorter period so as to adjust to a new fixed date and thereafter

2-23     estimating the expenses for 12-month periods following the adjusted

2-24     fixed date.

2-25           Sec. 55.360.  List of Delinquent Assessments.  Assessments

2-26     not paid when due shall become delinquent on the first day of the

2-27     month following the date payment [Within 10 days after any

 3-1     assessment] is due, and the board shall post in a public place in

 3-2     the district a list of all persons who are delinquent in paying

 3-3     their assessments and shall keep posted a correct list of all

 3-4     delinquent assessments.  If persons who owe assessments have

 3-5     executed notes and contracts as provided in Section 55.358 of this

 3-6     code, they shall not be placed on the delinquent list until after

 3-7     the maturity of the notes and contracts.

 3-8           Sec. 55.363.  Interest and Collection Fees.  (a)  All

 3-9     assessments shall bear interest from the date payment is due at the

3-10     rate of 15 [10] percent a year.  Assessments not paid by the first

3-11     day of the month following the date payment is due shall become

3-12     delinquent, and a penalty of up to 15 percent of the amount of the

3-13     past-due assessment shall be added to the amount due.

3-14           (b)  If suit is filed to foreclose a lien on crops or if a

3-15     delinquent assessment is collected by an attorney before or after

3-16     suit [any legal proceeding], an additional amount of 15 [10]

3-17     percent on the unpaid assessment, penalty, [principal] and interest

3-18     shall be added as collection or attorney's fees.

3-19           SECTION 3.  Sections 58.304, 58.310, and 58.313, Water Code,

3-20     are amended to read as follows:

3-21           Sec. 58.304.  BOARD'S ESTIMATE OF MAINTENANCE AND OPERATING

3-22     [OPERATION] EXPENSES.  The board, on or as soon as practicable

3-23     after a date fixed by standing order of the board, shall estimate

3-24     the expenses of maintaining and operating the irrigation system for

3-25     the next 12 months.  The board may change the 12-month period for

3-26     which it estimates the expenses of maintaining and operating the

3-27     irrigation system by estimating such expenses for a shorter period

 4-1     so as to adjust to a new fixed date and thereafter estimating the

 4-2     expenses for 12-month periods following the adjusted fixed date.

 4-3           Sec. 58.310.  List of Delinquent Assessments.  Assessments

 4-4     not paid when due shall become delinquent on the first day of the

 4-5     month following the date payment [Within 10 days after any

 4-6     assessment] is due, and the board shall post in a public place in

 4-7     the district a list of all persons who are delinquent in paying

 4-8     their assessments and shall keep posted a correct list of all

 4-9     persons who are delinquent in paying assessments.  If a person who

4-10     owes an assessment has executed a note and contract as provided in

4-11     Section 58.302 of this code, he shall not be placed on the

4-12     delinquent list until after the maturity of the note and contract.

4-13           Sec. 58.313.  Interest and Collection Fees.  (a)  All

4-14     assessments shall bear interest from the date payment is due at the

4-15     rate of 15 [10] percent a year.  Assessments not paid by the first

4-16     day of the month following the date payment is due shall become

4-17     delinquent, and a penalty of up to 15 percent of the amount of the

4-18     past-due assessment shall be added to the amount due.

4-19           (b)  If suit is filed to foreclose a lien on crops or if a

4-20     delinquent assessment is collected by an attorney before or after

4-21     suit [any legal proceeding], an additional amount of 15 [10]

4-22     percent on the unpaid assessment, penalty, [principal] and interest

4-23     shall be added as collection or attorney's fees.

4-24           SECTION 4.  The importance of this legislation and the

4-25     crowded condition of the calendars in both houses create an

4-26     emergency and an imperative public necessity that the

4-27     constitutional rule requiring bills to be read on three several

 5-1     days in each house be suspended, and this rule is hereby suspended,

 5-2     and that this Act take effect and be in force from and after its

 5-3     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 2689 was passed by the House on April

         18, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2689 was passed by the Senate on May

         22, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor